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ABSTRACT

       The importance of internal control in the
administration of wages and salaries in ministry cannot be over emphasized. It
is the responsibility of management to establish and maintain an effective
internal control system that will enhance the attainment of organizational
goals.

       Therefore, this study seeks to find out
what extent the effectiveness of internal control system in ministries in Imo State
can checkmate frauds. To carry out this assignment both the primary and
secondary sources of data were used. A descriptive design was adopted for the
study. One hundred and twenty questionnaire were distributed but only one
hundred were returned. All the two were testing using Chi-square at 0.05 level
of significance.

       One accepted the null and rejected the
alternative indicating that gross payment in the ministry is not inflated while
the other one reject the null and accepted the alternative indicating that
there is a significant relationship between an effective internal control and
financial accountability.

       The summary of the finding revealed that

1)    There exists an internal control system in
ministry.

2)    That there is a laid down procedure but the
problems lies in its operations

3)    Those handling cash or near cash item are
properly checked but sometimes superiors may encourage those handling cash to
spend it inappropriately.

4)    Importance is attached to the separation of
duties in the area of execution and custody of cash and bank reconciliation.

Based
on the findings the following recommendations were made.

1)    It is suggested that all wages and salaries
irrespective of the amount should be paid by cheque as to allow the
authenticity of wages and salaries payment.

2)    It is strongly recommended that workers
should be effectively motivated to attain organizational goal.

3)    Young officer should be made aware of the
internal control measure in the environment in which they operate.

TABLE OF CONTENT

Title
page

Approval
page

Dedication

Acknowledgement

Abstract

Table
of contents

CHAPTER ONE

1. Introduction

1.1  Background of the study

1.2  Statement of the problem

1.3  Objectives of the study

1.4  Research questions

1.5  Significance of the study

1.6  Scope of the study

1.7  Limitation of the study

1.8  Definition of terms

CHAPTER TWO

2.1  Definition of internal control

2.2  Principles of internal control

2.3  Importance of internal control

2.4  Objective of internal control

2.5  Internal control environment

2.5.1
A good account system

2.5.2
Personnel quality and welfare

2.5.3
Organization structure

2.5.4
Internal Audit

2.5.6
Characteristics of reliable 

2.6  Component of internal control

2.6.1
Internal Audit

2.6.2
Internal check

2.6.3
Financial control

2.6.4
Moral control

2.7  Type of internal control

2.7.1
Organization

2.7.2
Segregation duties

2.7.3
Physical

2.7.4
Authorization and approval

2.7.5
Arithmetical and accounting

2.7.6
Personnel

2.7.7
Supervision

2.8  Management

2.9  Limitation of the effective

CHAPTER THREE

3.1  Introduction

3.2  Restatement of the research question

3.3  Research design

3.4  Sampling procedure

3.5  Data collection and allocation

3.6  Statistical tools

3.7  Questionnaire design

CHAPTER FOUR

• Presentation, analysis and interpretation

4.1  Questionnaire analysis

4.1  Analysis of questionnaire respondent

CHAPTER FIVE

5.1  Conclusion

5.2  Recommendation

5.3  Bibliography

5.4  Appendix

5.5  Questionnaires

CHAPTER ONE

1.0  INTRODUCTION

1.1  BACKGROUND
OF THE STUDY

 Ministries faced and saddled with the responsibility of administration of wages and salaries. The need for this arises so as to eliminate the case of ghost workers, to ensure that standards are maintained and adhered to, to ensure that workers are paid at the appropriate rate and to detect fraud by managers or other persons. These motives led to the introduction of an internal control system which has been defined in statement on auditing (U.4) as being “not only internal check and internal audit but the whole system of control, financial and otherwise, established by management in order to carry on the business of the company in an orderly manner, safeguard its assets and secure as far as possible the accuracy and reliability of its records”.

 It is known fact that management in all ministries irrespective of their size and nature has financial statement as their main vehicle for presenting accountability and stewardship to the shareholders of their ministries.

 Accounting to LYNN (1983) “The statistical data that must be estimated and accumulated to plan and control virtually all operation of ministries are best used in conjunction with financial data”. It can then be deducted that accountability and stewardship are best rendered in form of financial statement. Hence, management must device adequate means of promoting efficiency in operations safe guarding resources from fraud and other forms of mis-management and creating a reliable atmosphere over recorded transaction. This necessitates the concept of internal controls system in any ministry. If a financial statement is to present a true and view, then there must be effective control at all facts of ministries.

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